"Globalisation" was coined by Levitt (1983) who describes it as the shrinking of the world as brought about by the expansion of the reach of global media and the reduced cost of communication, resulting in the convergence in the tastes of consumers worldwide and the large-scale creation of global markets for standardised products. According to Giddens (2001), it is "the growing interdependence between different people, regions and countries in the world as social and economic relationships come to stretch worldwide".
It is these economic and political relationships which have encouraged nations to reevaluate their political agenda and economic policies. According to Rosenberg (2000), "The term 'globalisation' after all, is at first sight merely a descriptive category, denoting either the geographical extension of social processes or possibly, as in Giddens' definition, 'the intensification of worldwide social relations'."
Among the major economic changes in a more globalised world is the diminishing role of nation-sates and the increased significance of transnational corporations in the transformation of the economies in bothy the national and international scales. Business is at its primacy and transnational corporations which possess cross-border markets and production systems are the poster boys of an increasingly globalised planet. In business and industry, Bartlett and Ghoshal (1989), Hout et all.(1982), Campbell (1993), Keegan (1995), Bertrand (1994), Parker (1998) find that "Globalization [to business administration] is the set of transformations faced by companies as a consequence of the contemporary phenomenon typical of the post cold war which is constituted by: (1) the empowerment of transnational organizations; (2) the mass information technology evolution; (3) the increasing flows of capital, merchandise, people and data across national borders; and (4) the tendency of world market homogenisation." (Azevedo and Bertrand, 2000).
Among the most dynamic economies of the 21st century is China. It has for the past five decades undergone numerous, often radical transformations, finally emerging from its cocoon to become among the most powerful and influential economic and political players in the Asian region and the global stage. In fact, China has opened its doors to the world, providing business investments in many parts of the globe especially among developing and underdeveloped nations. It has also adopted shifts in policy and governance, designed to attract robust invest6ments and businesses from abroad and bolster the vast potentials of its trade, commerce and other potentials of its economy. Like all other nations, China must reckon with the permeating effects and challenges of an increasingly globalised world.
Like all other nations, China must reckon with the increasing role and dominance of transnational corporations and the diminishing roles of nation-states. From a highly centralised form of government, China must begin to not only delegate policy and decision-making to its corporations, but also encourage and develop its corporations into globally-competitive entities. This entails empowerment of its domestic corporations, gradually increasing their capability to undertake vital economic, operational and management decisions for both